Entergy Nuclear grew its nuclear fleet with the first U.S.competitive bid purchase of a nuclear plant. Entergy bought PilgrimStation, a 670-megawatt reactor in Plymouth, MA, from Boston Edisonfor $81 million. The deal closed less than eight months after thecompanies agreed to transfer ownership.

“Pilgrim is the first of many plants we plan to acquire,” saidDon Hintz, president of Entergy Corp. “We intend to be a majorplayer in the new market with a large portfolio of well-run,competitive nuclear units. This sale is a good first step towardachieving that goal.”

“The sale of Pilgrim to a company that owns and operates alarger fleet of nuclear generating units helps ensure that safe,reliable, and economical electricity will continue to be providedto the northeast,” said Tom May, Boston Edison CEO.

The competitive bid process is considered to be a model for thenuclear industry. Entergy will pay Boston Edison $81 million forPilgrim Station, the nuclear fuel, and the plant’s 1,600-acre siteon Cape Cod Bay. In addition, credits of up to $31 millionpotentially available on future nuclear insurance premiums would betransferred from Entergy to Boston Edison. The sale includes powerpurchase agreements through 2004. Boston Edison will fully fund theplant’s decommissioning trust with $471 million. Entergy expects torealize a $0.05/share earnings contribution to 1999 earnings fromPilgrim’s operation.

“This marks the first completed sale in the history of theindustry,” said Jerry Yelverton, CEO of Entergy’s nuclearcompanies.

Entergy Nuclear is a non-regulated subsidiary of Entergy Corp.,a New Orleans-based global energy company that distributes energyto 2.5 million customers.

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